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Month: August 2018

Renters and homeowners can get flood insurance from private companies or the federal government. The only way you can ensure your home in Selden, NY against floods is by purchasing a separate policy since your renters or homeowners insurance will not be enough to protect your home in the event of floods. If you have a mortgage and you are living in a high-risk flood zone, your house lender may require you to purchase a flood insurance policy to protect you and your home against floods. At XL Brokerage Inc. we understand the dangers of floods, and that’s why we have a comprehensive flood insurance policy for you. Before purchasing flood insurance, ask yourself these three questions.

What Determines the Cost of Your Flood Insurance?

The cost of flood insurance varies dramatically depending on the location of your home and the type of insurance policy. What you need to know is that the federal government controls insurance rates and the premiums will be the same no matter the agent or insurer. The rates are set by the federal government and depend on several predetermined factors such as the flood risk, the value of your home in Selden, NY and the year it was built.

What Does Flood Insurance Cover?

Flood insurance covers electrical and plumbing systems in your home, water heaters, window blinds and permanently installed carpeting, your home and its foundation, central air, and heating equipment, bookcases, wallboard, and cabinets. If you are living in a low-risk area and you have a comprehensive risk policy, or you have a personal property coverage in high-risk areas, flood insurance will cover your personal belongings such as electronics clothing and furniture. Also, all structures attached to your home are covered by the flood insurance.

Does Flood Insurance Cover Additional Living Costs?

Your additional living costs coverage helps pay for expenses related to moving out of your home during the repair process. It covers expenses such as restaurant bills, laundry, and even dry cleaning services until you get back to your home. Most private insurance companies cover additional expenses since they have a policy that allows the purchase of business interruption coverage and additional living costs coverage.

Are you a homeowner in Selden, NY and you need a comprehensive flood insurance policy to protect your property? Contact XL Brokerage Inc. today for quality insurance services.

Making an investment in rental property has always been a popular investment choice, especially residential housing. The decision to invest in residential rental property is often attributed to the consistent returns you can expect, particularly when long-term returns are expected. If you are considering investing in a rental property in Selden, NY, here are a few steps you’ll need to take to ensure a successful investment.

Evaluate the Quality of the Property

Property quality is an essential factor when it comes to investing in any type of property. It is important that the property features are appropriate for the location and the market. For example, an apartment should have security features or an apartment in a family oriented suburb should have at least 3 bedrooms. Another important quality of the property is that the required maintenance is low, so make sure to carefully check the exterior as well as the surrounding area to ensure the property has been well maintained. It’s also a good idea to have a pre-purchase pest and building inspection, which will eliminate any surprises.

Have a Grasp on Expected Returns

The most important thing to consider is what you are hoping to achieve from the investment. For example, capital gains from increasing property value, continuous cash-flow in the form of rent or perhaps both. Then consider the total costs of property ownership, including the investment loan, property insurance, association fees and etc. Once you have a basic idea of this information, estimate what the property will rent for by taking into account the rental rates for other properties in the area. If your expenses are greater than the rental income, then you will be relying primarily on the potential capital gains and the tax deductions in order to make this a worthwhile investment.

It is essential that you be prepared for unforeseen situations, such as the property being vacant for a long period of time. It is important to ask yourself if you will be able to cover the expenses of your investment without the generated income. For example, you will need to continue paying for landlord insurance, property maintenance, and mortgage payments. If you are having difficulties renting the property because you live out of state, you may need to hire a property management company which is another expense. If your rental property in Selden in well maintained and in the right location, you shouldn’t have to worry about the risks, but it’s always better to be prepared.